Management Leading and Collaborating in A Competitive World 11th Edition Bateman Test Bank 1

Management Leading and
Collaborating in a Competitive World

11th Edition Test Bank
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Chapter 05
Ethics, Corporate Responsibility, and Sustainability
True / False Questions
5-1
Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
1. Ethics is the system of rules that governs the ordering of values.
True False
2. Most people have unconscious biases that favor themselves and their own group.
True False
3. Astroturfing is considered a difficult but ethical practice.
True False
4. An ethical issue is a situation, problem, or opportunity in which an individual is obligated to

choose among several actions that must be evaluated as legal or illegal on the basis of law.
True False
5. Business ethics comprises the moral principles and standards that guide behavior in the world
of business.
True False
6. Moral philosophy refers to the principles, rules, and values people use in deciding what is
right or wrong.
True False
7. Universalism is an ethical system stating that the greatest good for the greatest number
should be the overriding concern of decision makers.
True False
5-2
8. Two basic ethical ideals underpin the Caux Principles: fairness and equality.
True False
9. The ethical system known as egoism is similar to Adam Smith's concept of the invisible hand
in business.
True False
10. Utilitarianism defines acceptable behaviors as those that maximize benefits for the individual.
True False
11. Utilitarianism directly seeks the greatest good for the greatest number of people.
True False
12. Relativism is a philosophy that bases ethical behavior on the opinion and behaviors of relevant
other people.
True False
13. According to virtue ethics, moral individuals can transcend society's rules by applying personal
virtues.
True False
14. People in the preconventional stage of Kohlberg's model of cognitive moral development
conform to the expectations of ethical behavior held by groups or institutions such as society,
family, or peers.
True False
5-3
15. The Sarbanes-Oxley Act, passed in 2002, includes provisions for senior managers to
personally sign off on financial results.
True False
16. The ethical climate of an organization refers to the processes by which decisions are
evaluated and made on the basis of right and wrong.
True False
17. Excessive emphasis on long-term revenues over shorter-term considerations is one of the
factors conducive to unethical behavior.
True False
18. Individuals can be ethical leaders if they have a strong moral character, regardless of what
issues actually get most of their attention.
True False
19. Compliance-based ethics programs are concerned with instilling in people a personal
responsibility for ethical behavior.
True False
20. With an integrity-based ethics program, people govern themselves through a set of guiding
principles that they embrace.
True False
21. Moral awareness means knowing what actions are morally defensible.
True False
5-4
22. A good process for ethical decision making begins with considering the legal requirements.
True False
23. Being a whistleblower is typically a straightforward and painless process.
True False
24. Economic responsibility forms the base of the pyramid of global corporate social responsibility
and performance.
True False
25. Philanthropic contributions are considered part of a firm's ethical responsibilities in the
pyramid of global corporate social responsibility and performance.
True False
26. A transcendent education involves balancing self-interest with responsibility to others.
True False
27. Persuasion is one of the five higher goals in transcendent education that balances self-
interest with responsibility to others.
True False
28. According to Milton Friedman's famous dictum, the social responsibility of business is to
increase profits.
True False
5-5
29. Profit maximization and corporate social responsibility necessarily lead to opposing corporate
policies.
True False
30. In general, the accumulated evidence indicates that social responsibility is associated with
better long-term benefits.
True False
31. The goal of ecocentric management is the creation of sustainable economic development and
improvement of quality of life worldwide for all organizational stakeholders.
True False
32. Sustainable growth refers to growth in profitability that sustains the wealth of shareholders.
True False
33. Sustainability in business is considered compatible with the natural ecosystems that generate
and preserve life.
True False
34. Life-cycle analysis quantifies the total use of resources and the releases into the air, water,
and land.
True False
35. Greenwashing refers to misleading marketing claims about the environmentally friendly nature
of a product.
True False
5-6
Multiple Choice Questions
36. _____ is the system of rules that governs the ordering of values.
A. Ethnocentrism
B. Ethics
C. Dynamics
D. Legitimacy
E. Dialectics
37. Which of the following statements about unethical corporate behavior is true?
A. When corporations behave unethically, only the top executives suffer.
B. When corporations behave unethically, only the shareholders suffer.
C. When corporations behave unethically, the rank-and-file employees suffer the most.
D. When corporations behave badly, both top executives and rank-and-file employees are
shielded from the fallout.
E. There is no evidence that corporations today ever behave unethically.
5-7
38. Beth is a marketing agent. Most of her colleagues fill out inaccurate time records in the office
log so that they are eligible for extra pay. Beth can either do the same thing or log in real,
accurate details. This situation of Beth is an example of _____.
A. a moral rights debate
B. an ethical issue
C. kyosei
D. an avoidance situation
E. greenwashing
39. _____ is the ethical system stating that all people should uphold certain values that society
needs to function.
A. Relativism
B. Egoism
C. Universalism
D. Ethnocentrism
E. Utilitarianism
40. _____ refers to the principles, rules, and values people use in deciding what is right or wrong.
A. Ethical issue
B. Social capital
C. Emotional intelligence
D. Moral philosophy
E. Legal positivism
5-8
41. Ashleigh works as a receptionist for a law firm. Some of the lawyers have asked her to tell
callers that they are in court when in fact they are playing golf. She wanted to quit the job
because she hated to lie to people and believes that all people should uphold certain values
that society needs to function. Which of the following best describes the ethical system used
by Ashleigh to make the decision?
A. Egoism
B. Ethnocentrism
C. Relativism
D. Universalism
E. Utilitarianism
42. The Caux Principles are based on two ethical ideals:
A. fairness and equality.
B. self-fulfillment and sharing.
C. unity and respect.
D. kyosei and human dignity.
E. honesty and happiness.
43. _____ considers acceptable behavior to be that which maximizes benefits for the individual.
A. Egoism
B. Ethnocentrism
C. Relativism
D. Universalism
E. Utilitarianism
5-9
44. The management of an organization follows the ideology that if they work keeping in mind the
company's own economic self-interest, the total wealth of the society will be maximized.
Which of the following best describes the ethical system used by the organization?
A. Ethnocentrism
B. Relativism
C. Egoism
D. Universalism
E. Utilitarianism
45. Utilitarianism is centered around the idea that:
A. ethical ideas depend on kyosei and human dignity.
B. an ethical system should define acceptable behavior as that which maximizes

consequences for the individual.
C. an ethical system with no rules will help bring out the best of people.
D. ethical behavior should be based on the opinions and behaviors of relevant other people.
E. the greatest good for the greatest number should be the overriding concern of decision
makers.
46. _____ is a philosophy that bases ethical behavior on the opinions and behaviors of relevant
other people.
A. Egoism
B. Virtue ethics
C. Relativism
D. Universalism
E. Utilitarianism
5-10
47. _____ acknowledges the existence of different ethical viewpoints and uses norms as
guidelines.
A. Virtue ethics
B. Relativism
C. Universalism
D. Utilitarianism
E. Egoism
48. Bina downloaded music from the Internet on her office computer. As all of her colleagues did
it, she thought it was fine to do so. In this scenario, which of the following ethical systems has
Bina used to rationalize her decision?
A. Egoism
B. Virtue ethics
C. Relativism
D. Universalism
E. Utilitarianism
49. Which of the following best describes an ethical perspective that goes beyond the
conventional rules of society by suggesting that what is moral must also come from what a
mature person with good "moral character" would deem right?
A. Business ethics
B. Virtue ethics
C. Relativism
D. Utilitarianism
E. Egoism
5-11
50. Which of the following is one of Kohlberg's stages of cognitive moral development?
A. Unconventional
B. Emotional
C. Relative
D. Principled
E. Developed
51. According to Kohlberg's model of cognitive moral development, people in which of the
following stages tend to make decisions based on rewards and punishments and immediate
self-interest?
A. Principled stage
B. Conventional stage
C. Righteous stage
D. Preconventional stage
E. Unconventional stage
52. Shannon is a marketing agent who determines his work behavior solely on whether he thinks
he can do them without receiving immediate punishment from his boss. According to
Kohlberg, which of the following stages of moral development does Shannon's behavior
exemplify?
A. Principled stage
C. Righteous stage
5-12
53. Cassandra's behavior is typically guided by what she thinks would be acceptable to her
parents. According to Kohlberg, which of the following stages of moral development does
Cassandra's behavior exemplify?
A. Utilitarian stage
C. Principled stage
E. Conclusive stage
54. A person who sees beyond authority, laws, and norms and follows his own self-chosen ethical
principles is most likely to be in the _____ stage of Kohlberg's model of cognitive moral
development.
A. utilitarian
B. conventional
C. principled
D. preconventional
E. intermediate
55. Which of the following statements about the Sarbanes-Oxley Act is true?
A. It was passed in 1992.
B. It requires strict adherence to accounting rules.
C. It gives senior managers power to not sign off on financial results.
D. It is intended to maintain truth in advertising.
E. It requires whistleblowers to be fired.
5-13
56. The _____ of an organization refers to the processes by which decisions are evaluated and
made on the basis of right and wrong.
A. corporate social responsibility
B. ethical climate
C. ecocentric management
D. legal responsibility
E. moral obligation
57. Which of the following is a danger sign that organizations may be allowing or even
encouraging unethical behavior?
A. Excessive emphasis over long-term consideration over short-term revenues
B. Failure to establish a written code of ethics
C. An informal corporate structure
D. Flexible timings that allow employees to choose their hours of work
E. Multiple levels of supervision and monitoring
58. The _____ ethical framework encourages employees to consider whether they would like to
see their decisions displayed on the front page of the newspaper.
A. Kohlberg
B. sunshine
C. Sarbanes-Oxley
D. egoism
E. utilitarian
5-14
59. Which of the following should be done for constructing an effective ethics code?
A. Keep it complex, formal, and rigid so that employees realize how serious it is.
B. Make it as catchy and clever as possible.
C. Involve only the legal department and top executives in writing the statement.
D. Let the employees construct the ethics code according to their ideologies.
E. Focus on real-life situations that employees can relate to.
60. An ethics program that is designed by corporate counsel to detect, prevent, and punish legal
violations is called a _____ ethics program.
A. life-cycle-based
B. compliance-based
C. competency-based
D. relativism-based
E. responsibility-based
61. Compliance-based ethics programs are typically designed by _____.
A. corporate counsel
B. employees
C. top executives
D. stockholders/owners
E. focus groups of customers
5-15
62. Compliance-based ethics programs:
A. are company mechanisms designed to instill in people a personal responsibility for ethical
behavior.
B. are designed by corporate counsel to prevent, detect, and punish legal violations.
C. define ethical behavior as that which maximizes consequences for the individual.
D. define ethical system stating that the greatest good for the greatest number should be the
overriding concern of decision makers.
E. are designed by the employees to define what ethical standards they should follow.
63. Integrity-based ethics programs involve _____.
A. stated ethics, rules, and policies
B. corporate social responsiveness
C. a set of guiding principles
D. monitoring and punishment
E. discretionary social responsibility
64. Going beyond legal compliance with ADA standards and training people to understand that
individuals with disabilities also have valued abilities is an example of a(n)_____ ethics
program.
A. compliance-based
B. integrity-based
C. egoism-based
D. competency-based
E. utilitarianism-based
5-16
65. Making ethical decisions takes moral _____ which helps realize that an issue has ethical
implications.
A. certainty
B. actionability
C. awareness
D. judgment
E. character
66. Having the strength and persistence to act in accordance with one's ethics despite the
challenges is referred to as moral _____.
A. awareness
B. judgment
C. certainty
D. action
E. character
67. According to John Rawls, only a person ignorant of his own identity can make a truly ethical
decision. This thought process is based on _____.
A. ethical shielding
B. the veil of understanding
C. the veil of ignorance
D. ethical certainty
E. ethical ignorance
5-17
68. The process for ethical decision making begins with:
A. defining the complete moral problem.
B. developing an ethical framework and determining the economic outcomes.
C. considering the legal requirements and evaluating the legal duties.
D. understanding all moral standards and recognizing all moral impacts.
E. proposing a convincing moral solution.
69. Which of the following is most likely to be the last step in an ideal ethical decision-making
process?
A. Defining the complete moral problem
B. Developing an ethical framework
C. Determining the legal requirements
D. Understanding all moral standards
E. Proposing a moral solution
70. Making ethical decisions takes moral _____, which involves knowing what actions are morally
defensible.
A. awareness
B. judgment
C. character
D. action
E. certainty
5-18
71. To behave ethically, an individual will require:
A. social capital.
B. competitive intelligence.
C. creative thinking.
D. moral character.
E. technical skills.
72. Which of the following plays a role in the moral awareness involved in identifying an act as
unethical, the moral judgment to fully consider the repercussions, and the moral character to
take the ethical action?
A. Courage
B. Legitimacy
C. Intelligence
D. Compliance
E. Knowledge
73. Which of the following is true of whistleblowing?
A. The road for whistleblowers is easy and painless.
B. Whistleblowers are often encouraged by their company to go public.
C. Whistleblowers are seldom given undesirable assignments.
D. Many whistleblowers suffer consequences such as being ostracized.
E. The Sarbanes-Oxley Act prohibits whistleblowing.
5-19
74. Telling others, inside or outside the organization, about wrongdoing is called _____.
A. ethical shadowing
B. whistleblowing
C. egoism
D. ethical interference
E. moral consequences
75. Corporate social responsibility is the _____.
A. ethical system stating that all people should uphold certain values that society needs to
function
B. obligation toward society assumed by business
C. system that defines acceptable behavior as that which maximizes consequences for the
individual
D. ideology that the greatest good for the greatest number should be the overriding concern of
decision makers
E. maximization of shareholder wealth
76. FoodieZ, a fast food manufacturer, changed the packaging of its sandwiches to minimize
waste. Additionally, it uses recycled paper to bag its products. FoodieZ states that these
actions make the earth a "better place to eat." In this scenario, FoodieZ is participating in
_____.
A. deregulation
B. corporate entrepreneurship
C. maximizing customer actualization
D. corporate social responsibility
E. corporate wealth enhancement
5-20
77. Which of the following responsibilities lies at the base of the pyramid of global corporate
social responsibility and performance?
A. Legal
B. Economic
C. Moral
D. Ethical
E. Philanthropic
78. _____ responsibilities of business are to produce goods and services that society wants at a
price that perpetuates the business and satisfies its obligations to investors.
A. Economic
B. Legal
C. Financial
D. Philanthropic
E. Ethical
79. Within the pyramid of global corporate social responsibility and performance, doing what is
required by global stakeholders is categorized as a(n) _____ responsibility.
A. economic
B. legal
C. financial
D. philanthropic
E. ethical
5-21
80. Which of the following levels of corporate social responsibility of business includes meeting
societal expectations that are not written as law?
A. Economic
B. Legal
C. Social
D. Philanthropic
E. Ethical
81. Which of the following responsibilities of business did Pork producer Smithfield Foods take on
by discontinuing the practice of confining sows in gestation crates during pregnancy,
conforming to external expectations though not legally required?
A. Financial responsibility
B. Economic responsibility
C. Ethical responsibility
D. Legal responsibility
E. Philanthropic responsibility
82. Which level of the pyramid of global corporate social responsibility and performance
represents a company's efforts to be a good global corporate citizen, such as supporting
community programs?
A. Economic responsibility
B. Legal responsibility
D. Philanthropic responsibility
E. Financial responsibility
5-22
83. Which of the following levels of the pyramid of global corporate social responsibility and
performance represents a company's requirement to be profitable?
B. Relative responsibility
E. Legal responsibility
84. The order of the levels in the pyramid of global corporate social responsibility and
performance from bottom to top is _____.
A. economic, legal, philanthropic, and ethical
B. ethical, economic, legal, and philanthropic
C. economic, legal, ethical, and philanthropic
D. legal, economic, ethical, and philanthropic
E. philanthropic, economic, legal, and ethical
85. Home Depot supports Habitat for Humanity, a nonprofit that builds affordable housing for
those struggling with poverty, housing, or homelessness. Donation to such an organization is
an example of _____ responsibility.
A. economic
B. legal
C. conventional
D. ethical
E. philanthropic
5-23
86. A(n) _____ has five higher goals that balance self-interest with responsibility to others.
A. utilitarian education
B. universalism education
C. transcendent education
D. integrity-based ethics program
E. compliance-based ethics program
87. Which of the following is a goal of a transcendent education?
A. Persuasion
B. Independence
C. Empathy
D. Candidness
E. Persistence
88. Which of the five goals of a transcendent education involves viewing success not merely as
personal gain, but as a common victory?
A. Empathy
B. Generativity
C. Mutuality
D. Civil aspiration
E. Intolerance of ineffective humanity
5-24
89. As one of the goals of a transcendent education, speaking out against unethical actions is
called _____.
A. empathy
B. generativity
C. mutuality
D. civil aspiration
E. intolerance of ineffective humanity
90. As one of the goals of transcendent education, learning how to give as well as take, to others
in the present as well as to those in the future is called _____.
A. empathy
B. generativity
C. mutuality
D. civil aspiration
91. As one of the goals of transcendent education, thinking not just in terms of "don'ts," but also
in terms of positive contributions is called _____.
A. empathy
B. generativity
C. mutuality
D. civil aspiration
5-25
92. Advocates of corporate social responsibility argue that:
A. organizations ought to be profit-seeking and that when they concentrate on this motive,
they will benefit society.
B. organizations' only responsibilities are clearly defined by the laws and regulations imposed
upon them.
C. organizations' responsibilities are to attempt to satisfy all relevant stakeholders' interests.
D. it is unethical for unelected business leaders to spend shareholders' money on projects

unconnected to key business interests.
E. organizations have a wider range of responsibilities that extend beyond the production of
goods and services at a profit.
93. _____ has as its primary goal the creation of sustainable economic development and
A. Corporate social responsibility
B. Life-cycle analysis
C. Ecocentric management
D. Transcendent education
E. Integrity-based ethics program
94. Economic growth and development that meet present needs without harming the needs of
future generations is known as _____.
A. ecocentric management
B. risk management
C. sustainable growth
D. resource management
E. ecocentric growth
5-26
95. _____ is a process of analyzing all inputs and outputs, through the entire "cradle-to-grave" life
of a product, to determine the total environmental impact of the production and use of a
product.
A. Ecocentric management
C. Sustainable growth
D. SWOT analysis
E. Trend analysis
Scenario A: An organization faces an ethical dilemma. A problem with the accounting process
has resulted in higher profits being reported than were actually earned. A meeting has been
arranged where senior management would decide how to handle the situation. The people at
the table have varying views of what action to take and why.
Ethan wants to report the error immediately because he believes he could possibly go to jail if
it isn't reported right away.
Tripp wants to report the error because it is the honest thing to do, and therefore necessary.
After hearing his colleagues' opinions, Carlos says he wants to report the error as well
because he wants to go along with the more experienced managers in the group.
96. Which of the following best describes the ethical system used by Tripp to make his decision?
A. Universalism
B. Egoism
C. Utilitarianism
D. Relativism
E. Virtue ethics
5-27
97. Which of the following best describes the ethical system used by Ethan to make his decision?
A. Universalism
B. Egoism
C. Utilitarianism
D. Relativism
E. Virtue ethics
98. Which of the following best describes the ethical system used by Carlos to make his
decision?
A. Universalism
B. Egoism
C. Utilitarianism
D. Relativism
E. Virtue ethics
99. Assume the meeting ending with employees deciding that none of them will report or do
anything about any possible unethical behavior. Walt, an employee who was present in the
meeting, reports the issue to his manager who was not present in the meeting. Which of the
following best describes the action taken by Walt?
A. Whistleblowing
B. Relativism
C. Ethnocentrism
D. Shadowing
E. Unethical stance
5-28
Scenario B: Suppose a manager faces a question regarding how to handle a defective piece of
equipment that his company sold. Telling the customer would cost him a substantial amount
of money. At the same time, if the equipment fails, it could lead to serious injury of the
customer. The manager is going to choose between three options presented by colleagues:
Option 1: Keep quiet about the defect.

Option 2: Talk to others and see what they would have done in the same situation.
Option 3: Disclose the defect and suggest alternatives because it is the honest thing to do.
100.Which of the following terms best describes the ethical approach used in option 1?
A. Universalism
B. Egoism
C. Utilitarianism
D. Relativism
E. Virtue ethics
101.Which of the following terms best describes the ethical approach used in option 2?
A. Universalism
B. Egoism
C. Utilitarianism
D. Relativism
E. Virtue ethics
5-29
102.Which of the following options best describes the ethical approach used in option 3?
A. Universalism
B. Egoism
C. Utilitarianism
D. Relativism
E. Virtue ethics
Scenario C: Adrian and Clarke, managers from different departments at Clarion Bank, are
discussing the troubling behavior of a bank employee. Adrian says that it is the responsibility
of high-level managers to take steps and prevent offenses by punishing wrongdoers. However,
Clarke believes that every individual should take personal responsibility for his behavior and
that everyone needs to understand how to do the right thing.
103.In Scenario C, each of the managers tend to be responsible for creating a different _____ in
their respective departments.
A. legal responsibility
B. ethical climate
D. organizational structure
E. corporate culture
5-30
104.Which of the following types of ethics program does Adrian prefer for the company?
A. Associate-based
B. Compliance-based
C. Integrity-based
D. Systems-based
E. Consensus-based
105.Which of the following types of ethics program does Clarke prefer for the company?
A. Associate-based
B. Compliance-based
C. Integrity-based
D. Systems-based
E. Consensus-based
Scenario D: John and Mack are colleagues who witnessed one of their team members, Jake,
using the office telephone to make an emergency personal call, which is prohibited in their
company. The management had previously announced that those who report wrongdoing of
fellow employees will be rewarded. John decided not to report Jake's act to the management
since it involved an emergency situation. However, Mack decided to do so with the hope of
being rewarded.
5-31
106.In Scenario D, according to Kohlberg's model of cognitive moral development, John can be
categorized as being in the _____ stage.
A. preconventional
B. conventional
C. principled
D. unconventional
E. operational
107.In Scenario D, according to Kohlberg's model of cognitive moral development, Mack can be
A. preconventional
B. conventional
C. principled
D. unconventional
E. operational
Scenario E: Senior management at Valley Development is attending a corporate retreat, and

the first item for discussion is corporate social responsibility (CSR). The group has discussed
this before and then shot it down because it generally costs Valley's shareholders in the form
of reduced distributions. But the new VP, Gita Halle, is about to explain why she believes CSR
will actually benefit the shareholders and Valley management alike. Her team begins the
presentation with a discussion of CSR, both its current definition and reconciliation of past
views. Jeremiah then discusses the importance of being a good global corporate citizen by
supporting the local school system. Ellen takes the floor to make the case for doing what is
expected by global stakeholders even though there are no laws requiring those actions. Finally
Gita wraps the discussion up by defining why Valley should take legal responsibility for the
firm's performance.
5-32
108.In Scenario E, Jeremiah's presentation most likely focuses on the _____ responsibility of the
firm.
A. economic
B. legal
C. ethical
D. financial
E. philanthropic
109.In Scenario E, Ellen's presentation most likely focused on the _____ responsibility of the firm.
A. economic
B. legal
C. ethical
D. social
E. philanthropic
110.Gita's presentation most likely centered on taking which of the following actions?
A. Production of goods and services that society wants at a price that perpetuates the
business and satisfies its obligations to investors
B. Obeying all laws that affect Valley's operations
C. Doing the right thing regardless of what the law says
D. Supporting Jeremiah's proposal
E. Engaging in additional behaviors and activities that society finds desirable and that the
values of the business support
5-33
Essay Questions
111.Explain the terms ethical issue, business ethics, and moral philosophy.
112.Discuss the types of ethical systems and provide an example for each.
5-34
113.Describe Kohlberg's model of cognitive moral development. Give an example for each of the
stages.
114.There are some danger signs within an organization that create a climate which encourages
unethical behavior. Describe five of them.
115.Describe compliance-based ethics programs and integrity-based ethics programs. Explain the
differences between them.
5-35
116.Making ethical decisions takes moral awareness, moral judgment, and moral character.
Define each term and explain how you would use it in business.
117.Explain the process for ethical decision making.
118.Write an essay on whistleblowing.
5-36
119.Explain the pyramid of global corporate social responsibility and performance.
120.Define transcendent education and explain the five higher goals associated with it.
121.Build a case for the convergence of profit maximization and corporate social responsibility.
5-37
122.Explain how the natural environment and sustainability is linked with business ethics.
123.Explain the idea of a risk society.
124.Explain life-cycle analysis and how organizations are using it to pay more attention to the
total environmental impact.
5-38
125.Discuss ecocentric management.
5-39
Chapter 05 Ethics, Corporate Responsibility, and Sustainability
Answer Key
True / False Questions
1. Ethics is the system of rules that governs the ordering of values.
TRUE
Ethics is the system of rules that governs the ordering of values. It is believed that
managers, their organizations, and their communities thrive over the long term when the
managers apply ethical standards that direct them to act with integrity.
AACSB: Ethics
Accessibility: Keyboard Navigation
Blooms: Remember
Learning Objective: 05-01 Describe how different ethical perspectives guide decision making.
Level of Difficulty: 1 Easy
Topic: Introduction
5-40
2. Most people have unconscious biases that favor themselves and their own group.
TRUE
Most people have unconscious biases that favor themselves and their own group.
Managers often hire people who are like them, think they are immune to conflicts of
interest, take more credit than they deserve, and blame others when they deserve some
blame themselves.
AACSB: Ethics
Blooms: Understand
Level of Difficulty: 2 Medium
Topic: Introduction
3. Astroturfing is considered a difficult but ethical practice.
FALSE
When an organization practices Astroturfing, it pays bloggers to write positive comments

about them. This is considered a deceptive practice.
AACSB: Ethics
Blooms: Understand
Topic: Introduction
5-41
4. An ethical issue is a situation, problem, or opportunity in which an individual is obligated to
choose among several actions that must be evaluated as legal or illegal on the basis of
law.
FALSE
An ethical issue is a situation, problem, or opportunity in which an individual must choose

among several actions that must be evaluated as morally right or wrong.
AACSB: Ethics
Blooms: Remember
Topic: Ethics
5. Business ethics comprises the moral principles and standards that guide behavior in the
world of business.
TRUE
Business ethics comprises the moral principles and standards that guide behavior in the
world of business.
AACSB: Ethics
Blooms: Remember
Topic: Ethics
5-42
6. Moral philosophy refers to the principles, rules, and values people use in deciding what is
right or wrong.
TRUE
Moral philosophy refers to the principles, rules, and values people use in deciding what is
right or wrong.
AACSB: Ethics
Blooms: Remember
Topic: Ethics
7. Universalism is an ethical system stating that the greatest good for the greatest number
FALSE
Universalism states that all people should uphold certain values, such as honesty, that
society needs to function. Universal values are principles so fundamental to human
existence that they are important in all societies, for example rules against murder, deceit,
torture, and oppression.
AACSB: Ethics
Blooms: Understand
Topic: Ethics
5-43
8. Two basic ethical ideals underpin the Caux Principles: fairness and equality.
FALSE
Two basic ethical ideals underpin the Caux Principles: kyosei and human dignity. Kyosei
means living and working together for the common good, allowing cooperation and mutual
prosperity to coexist with healthy and fair competition. Human dignity concerns the value
of each person as an end, not a means to the fulfillment of others' purposes.
AACSB: Ethics
Blooms: Understand
Topic: Ethics
9. The ethical system known as egoism is similar to Adam Smith's concept of the invisible
hand in business.
TRUE
According to egoism, acceptable behavior is that which maximizes benefits for the
individual. This notion is similar to Adam Smith's concept of the invisible hand in business.
Smith argued that if every organization follows its own economic self-interest, the total
wealth of society will be maximized.
AACSB: Ethics
Blooms: Understand
Topic: Ethics
5-44
10. Utilitarianism defines acceptable behaviors as those that maximize benefits for the
individual.
FALSE
individual.
AACSB: Ethics
Blooms: Remember
Topic: Ethics
11. Utilitarianism directly seeks the greatest good for the greatest number of people.
TRUE
Utilitarianism is an ethical system stating that the greatest good for the greatest number
AACSB: Ethics
Blooms: Remember
Topic: Ethics
5-45
12. Relativism is a philosophy that bases ethical behavior on the opinion and behaviors of
relevant other people.
TRUE
Relativism defines ethical behavior based on the opinions and behaviors of relevant other
people. It acknowledges the existence of different ethical viewpoints. For example, norms,
or standards of expected and acceptable behavior, vary from one culture to another.
AACSB: Ethics
Blooms: Remember
Topic: Ethics
13. According to virtue ethics, moral individuals can transcend society's rules by applying
personal virtues.
TRUE
Virtue ethics is a perspective that goes beyond the conventional rules of society by
suggesting that what is moral must also come from what a mature person with good "moral
character" would deem right. Society's rules provide a moral minimum, and then moral
individuals can transcend rules by applying their personal virtues such as faith, honesty,
and integrity.
AACSB: Ethics
Blooms: Understand
Topic: Ethics
5-46
14. People in the preconventional stage of Kohlberg's model of cognitive moral development
conform to the expectations of ethical behavior held by groups or institutions such as
society, family, or peers.
FALSE
People in the preconventional stage make decisions based on rewards and punishments
and immediate self-interest. People in the conventional stage conform to the expectations
of ethical behavior held by groups or institutions such as society, family, or peers.
AACSB: Ethics
Blooms: Understand
Topic: Ethics
15. The Sarbanes-Oxley Act, passed in 2002, includes provisions for senior managers to
personally sign off on financial results.
TRUE
Congress passed the Sarbanes-Oxley Act in 2002 to improve and maintain investor
confidence. The law requires companies to have more independent board directors, to
adhere strictly to accounting rules, and to have senior managers personally sign off on
financial results.
AACSB: Ethics
Blooms: Understand
Learning Objective: 05-02 Explain how companies influence their ethics environment.
Topic: Ethics
5-47
16. The ethical climate of an organization refers to the processes by which decisions are
TRUE
The ethical climate of an organization refers to the processes by which decisions are
AACSB: Ethics
Blooms: Remember
Topic: Ethics
17. Excessive emphasis on long-term revenues over shorter-term considerations is one of the
factors conducive to unethical behavior.
FALSE
Many factors create a climate conducive to unethical behavior, including excessive

emphasis on short-term revenues over longer-term considerations.
AACSB: Ethics
Blooms: Understand
Topic: Ethics
5-48
18. Individuals can be ethical leaders if they have a strong moral character, regardless of what
issues actually get most of their attention.
FALSE
When individuals are both personally moral and are moral managers, they will truly be
ethical leaders. They can have strong personal characters, but if they pay more attention to
other things, and ethics is managed by benign neglect, they won't have the reputation as
ethical leaders.
AACSB: Ethics
Blooms: Understand
Topic: Ethics
19. Compliance-based ethics programs are concerned with instilling in people a personal
responsibility for ethical behavior.
FALSE
Compliance-based ethics programs should reduce illegal behavior and help a company stay
out of court. But they do not create a moral commitment to ethical conduct; they merely
ensure moral mediocrity.
AACSB: Ethics
Blooms: Understand
Topic: Ethics
5-49
20. With an integrity-based ethics program, people govern themselves through a set of guiding
principles that they embrace.
TRUE
Integrity-based ethics programs are concerned with the law but also with instilling in
people a personal responsibility for ethical behavior. With such a program, companies and
people govern themselves through a set of guiding principles that they embrace.
AACSB: Ethics
Blooms: Understand
Topic: Ethics
21. Moral awareness means knowing what actions are morally defensible.
FALSE
Making ethical decisions takes moral awareness (realizing the issue has ethical
implications), moral judgment (knowing what actions are morally defensible), and moral
character (the strength and persistence to act in accordance with your ethics despite the
challenges).
AACSB: Ethics
Blooms: Remember
Learning Objective: 05-03 Outline a process for making ethical decisions.
Topic: Ethics
5-50
22. A good process for ethical decision making begins with considering the legal requirements.
FALSE
The process for decision making begins with understanding all moral standards and
recognizing all moral impacts.
AACSB: Ethics
Blooms: Remember
Topic: Ethics
23. Being a whistleblower is typically a straightforward and painless process.
FALSE
The road for whistleblowers is rocky. When whistleblowers go public, they are often seen
as acting against the company's interests. Many, perhaps most, whistleblowers suffer
consequences such as being ostracized, treated rudely, or given undesirable assignments.
AACSB: Ethics
Blooms: Understand
Topic: Ethics
5-51
24. Economic responsibility forms the base of the pyramid of global corporate social
responsibility and performance.
TRUE
The pyramid of global corporate social responsibility and performance is made up of four
levels, the bottom one being economic responsibility.
AACSB: Ethics
Blooms: Remember
Learning Objective: 05-04 Summarize the important issues surrounding corporate social responsibility.
Topic: Corporate Social Responsibility
25. Philanthropic contributions are considered part of a firm's ethical responsibilities in the
pyramid of global corporate social responsibility and performance.
TRUE
Philanthropic responsibilities are additional behaviors and activities that society finds
desirable and that the values of the business support. Examples include supporting
community projects and making charitable contributions.
AACSB: Ethics
Blooms: Understand
5-52
26. A transcendent education involves balancing self-interest with responsibility to others.
TRUE
A transcendent education has five higher goals that balance self-interest with
responsibility to others: empathy, generativity, mutuality, civil aspiration, and intolerance of
ineffective humanity.
AACSB: Ethics
Blooms: Remember
27. Persuasion is one of the five higher goals in transcendent education that balances self-
interest with responsibility to others.
FALSE
AACSB: Ethics
Blooms: Remember
5-53
28. According to Milton Friedman's famous dictum, the social responsibility of business is to
increase profits.
TRUE
The Nobel Prize-winning economist Milton Friedman's now-famous dictum is "The social
responsibility of business is to increase profits." Friedman contended that organizations
may help improve the quality of life as long as such actions are directed at increasing
profits.
AACSB: Ethics
Blooms: Remember
29. Profit maximization and corporate social responsibility necessarily lead to opposing
corporate policies.
FALSE
Profit maximization and corporate social responsibility used to be regarded as antagonistic,

leading to opposing policies. But the two views can converge.
AACSB: Ethics
Blooms: Understand
5-54
30. In general, the accumulated evidence indicates that social responsibility is associated with
better long-term benefits.
TRUE
On net, the accumulated evidence indicates that social responsibility is associated with
better financial performance. Socially responsible actions can have long-term benefits.
AACSB: Ethics
Blooms: Understand
31. The goal of ecocentric management is the creation of sustainable economic development
and improvement of quality of life worldwide for all organizational stakeholders.
TRUE
Ecocentric management has as its goal the creation of sustainable economic development
AACSB: Ethics
Blooms: Remember
Learning Objective: 05-06 Identify actions managers can take to manage with the environment in mind.
Topic: The Natural Environment and Sustainability
5-55
32. Sustainable growth refers to growth in profitability that sustains the wealth of
shareholders.
FALSE
Sustainable growth is economic growth and development that meet the organization's
present needs without harming the ability of future generations to meet their needs.
AACSB: Ethics
Blooms: Remember
33. Sustainability in business is considered compatible with the natural ecosystems that
generate and preserve life.
TRUE
Sustainability is fully compatible with the natural ecosystems that generate and preserve
life.
AACSB: Ethics
Blooms: Understand
5-56
34. Life-cycle analysis quantifies the total use of resources and the releases into the air, water,
and land.
TRUE
Life-cycle analysis (LCA) is a process of analyzing all inputs and outputs, through the
entire "cradle-to-grave" life of a product, to determine the total environmental impact of
the production and use of a product. LCA quantifies the total use of resources and the
releases into the air, water, and land.
AACSB: Ethics
Blooms: Understand
35. Greenwashing refers to misleading marketing claims about the environmentally friendly
nature of a product.
TRUE
Companies can emphasize green attributes in their marketing but need to avoid misleading
claims ("greenwashing") and public backlash.
AACSB: Ethics
Blooms: Understand
5-57
Multiple Choice Questions
36. _____ is the system of rules that governs the ordering of values.
A. Ethnocentrism
B. Ethics
C. Dynamics
D. Legitimacy
E. Dialectics
Ethics is the system of rules that governs the ordering of values. The premise is that
managers, their organizations, and their communities thrive over the long term when the
managers apply ethical standards that direct them to act with integrity.
AACSB: Ethics
Blooms: Remember
Topic: Introduction
5-58
37. Which of the following statements about unethical corporate behavior is true?
A. When corporations behave unethically, only the top executives suffer.
B. When corporations behave unethically, only the shareholders suffer.
C. When corporations behave unethically, the rank-and-file employees suffer the most.
D. When corporations behave badly, both top executives and rank-and-file employees are
shielded from the fallout.
E. There is no evidence that corporations today ever behave unethically.
When corporations behave badly, it's often not the top executives but the rank-and-file
employees who suffer most. In many cases, executives are secured through generous pay
and bonus packages. In contrast, employees, who had been encouraged to invest their
retirement packages heavily in their company's stock, saw their savings disappear along
with their company's reputation.
AACSB: Ethics
Blooms: Understand
Topic: Introduction
5-59
38. Beth is a marketing agent. Most of her colleagues fill out inaccurate time records in the
office log so that they are eligible for extra pay. Beth can either do the same thing or log in
real, accurate details. This situation of Beth is an example of _____.
A. a moral rights debate
B. an ethical issue
C. kyosei
D. an avoidance situation
E. greenwashing
An ethical issue is a situation, problem, or opportunity in which an individual must choose

among several actions that must be evaluated as morally right or wrong.
AACSB: Ethics
Blooms: Apply
Level of Difficulty: 3 Hard
Topic: Ethics
5-60
39. _____ is the ethical system stating that all people should uphold certain values that society
needs to function.
A. Relativism
B. Egoism
C. Universalism
D. Ethnocentrism
E. Utilitarianism
existence that they are important in all societies, such as rules against murder, deceit,
AACSB: Ethics
Blooms: Remember
Topic: Ethics
5-61
40. _____ refers to the principles, rules, and values people use in deciding what is right or
wrong.
A. Ethical issue
B. Social capital
C. Emotional intelligence
D. Moral philosophy
E. Legal positivism
Moral philosophy refers to the principles, rules, and values people use in deciding what is
right or wrong. This is a simple definition in the abstract but often terribly complex and
difficult when facing real choices.
AACSB: Ethics
Blooms: Understand
Topic: Ethics
5-62
41. Ashleigh works as a receptionist for a law firm. Some of the lawyers have asked her to tell
callers that they are in court when in fact they are playing golf. She wanted to quit the job
because she hated to lie to people and believes that all people should uphold certain
values that society needs to function. Which of the following best describes the ethical
system used by Ashleigh to make the decision?
A. Egoism
B. Ethnocentrism
C. Relativism
D. Universalism
E. Utilitarianism
existence that they are important in all societies, such as rules against murder, deceit,
AACSB: Ethics
Blooms: Apply
Topic: Ethics
5-63
42. The Caux Principles are based on two ethical ideals:
A. fairness and equality.
B. self-fulfillment and sharing.
C. unity and respect.
D. kyosei and human dignity.
E. honesty and happiness.
Two basic ethical ideals underpin the Caux Principles: kyosei and human dignity. Kyosei
means living and working together for the common good, allowing cooperation and mutual
prosperity to coexist with healthy and fair competition. Human dignity concerns the value
of each person as an end, not a means to the fulfillment of others' purposes.
AACSB: Ethics
Blooms: Remember
Topic: Ethics
5-64
43. _____ considers acceptable behavior to be that which maximizes benefits for the
individual.
A. Egoism
B. Ethnocentrism
C. Relativism
D. Universalism
E. Utilitarianism
individual. According to its proponents, if everyone follows this system, the well-being of
society as a whole should increase.
AACSB: Ethics
Blooms: Remember
Topic: Ethics
5-65
44. The management of an organization follows the ideology that if they work keeping in mind
the company's own economic self-interest, the total wealth of the society will be
maximized. Which of the following best describes the ethical system used by the
organization?
A. Ethnocentrism
B. Relativism
C. Egoism
D. Universalism
E. Utilitarianism
individual. The idea is that if every organization follows its own economic self-interest, the
total wealth of society will be maximized.
AACSB: Ethics
Blooms: Apply
Topic: Ethics
5-66
45. Utilitarianism is centered around the idea that:
A. ethical ideas depend on kyosei and human dignity.
B. an ethical system should define acceptable behavior as that which maximizes

consequences for the individual.
C. an ethical system with no rules will help bring out the best of people.
D. ethical behavior should be based on the opinions and behaviors of relevant other
people.
E. the greatest good for the greatest number should be the overriding concern of decision
makers.
Utilitarianism is an ethical system stating that the greatest good for the greatest number
AACSB: Ethics
Blooms: Understand
Topic: Ethics
5-67
46. _____ is a philosophy that bases ethical behavior on the opinions and behaviors of relevant
other people.
A. Egoism
B. Virtue ethics
C. Relativism
D. Universalism
E. Utilitarianism
people. Relativism acknowledges the existence of different ethical viewpoints, often based
on norms.
AACSB: Ethics
Blooms: Remember
Topic: Ethics
5-68
47. _____ acknowledges the existence of different ethical viewpoints and uses norms as
guidelines.
A. Virtue ethics
B. Relativism
C. Universalism
D. Utilitarianism
E. Egoism
people. Relativism acknowledges the existence of different ethical viewpoints, such as
norms.
AACSB: Ethics
Blooms: Remember
Topic: Ethics
5-69
48. Bina downloaded music from the Internet on her office computer. As all of her colleagues
did it, she thought it was fine to do so. In this scenario, which of the following ethical
systems has Bina used to rationalize her decision?
A. Egoism
B. Virtue ethics
C. Relativism
D. Universalism
E. Utilitarianism
people, such as Bina's colleagues. Relativism acknowledges the existence of different
ethical viewpoints, such as norms.
AACSB: Ethics
Blooms: Apply
Topic: Ethics
5-70
49. Which of the following best describes an ethical perspective that goes beyond the
conventional rules of society by suggesting that what is moral must also come from what a
mature person with good "moral character" would deem right?
A. Business ethics
B. Virtue ethics
C. Relativism
D. Utilitarianism
E. Egoism
Virtue ethics is a perspective that goes beyond the conventional rules of society by
suggesting that what is moral must also come from what a mature person with good "moral
character" would deem right. Society's rules provide a moral minimum, and then moral
individuals can transcend rules by applying their personal virtues such as faith, honesty,
and integrity.
AACSB: Ethics
Blooms: Remember
Topic: Ethics
5-71
50. Which of the following is one of Kohlberg's stages of cognitive moral development?
A. Unconventional
B. Emotional
C. Relative
D. Principled
E. Developed
Kohlberg's model of cognitive moral development classifies people into categories based
on their level of moral judgment. The stages are preconventional, conventional, and
principled.
AACSB: Ethics
Blooms: Remember
Topic: Ethics
5-72
51. According to Kohlberg's model of cognitive moral development, people in which of the
following stages tend to make decisions based on rewards and punishments and
immediate self-interest?
A. Principled stage
C. Righteous stage
Kohlberg's model of cognitive moral development classifies people into categories based
on their level of moral judgment. People in the preconventional stage make decisions
based on rewards and punishments and immediate self-interest.
AACSB: Ethics
Blooms: Understand
Topic: Ethics
5-73
52. Shannon is a marketing agent who determines his work behavior solely on whether he
thinks he can do them without receiving immediate punishment from his boss. According to
Kohlberg, which of the following stages of moral development does Shannon's behavior
exemplify?
A. Principled stage
C. Righteous stage
People in the preconventional stage of Kohlberg's model of cognitive moral development

make decisions based on concrete rewards and punishments and immediate self-interest.
AACSB: Ethics
Blooms: Apply
Topic: Ethics
5-74
53. Cassandra's behavior is typically guided by what she thinks would be acceptable to her
parents. According to Kohlberg, which of the following stages of moral development does
Cassandra's behavior exemplify?
A. Utilitarian stage
C. Principled stage
E. Conclusive stage
People in the conventional stage of Kohlberg's model of cognitive moral development

conform to the expectations of ethical behavior held by groups or institutions such as
society, family, or peers.
AACSB: Ethics
Blooms: Apply
Topic: Ethics
5-75
54. A person who sees beyond authority, laws, and norms and follows his own self-chosen
ethical principles is most likely to be in the _____ stage of Kohlberg's model of cognitive
moral development.
A. utilitarian
B. conventional
C. principled
D. preconventional
E. intermediate
People in the principled stage of Kohlberg's model of cognitive moral development see
beyond authority, laws, and norms and follow their self-chosen ethical principles.
AACSB: Ethics
Blooms: Understand
Topic: Ethics
5-76
55. Which of the following statements about the Sarbanes-Oxley Act is true?
A. It was passed in 1992.
B. It requires strict adherence to accounting rules.
C. It gives senior managers power to not sign off on financial results.
D. It is intended to maintain truth in advertising.
E. It requires whistleblowers to be fired.
Congress passed the Sarbanes-Oxley Act in 2002 to improve and maintain investor
confidence. The law requires companies to have more independent board directors, to
adhere strictly to accounting rules, and to have senior managers personally sign off on
financial results.
AACSB: Ethics
Blooms: Understand
Topic: Ethics
5-77
56. The _____ of an organization refers to the processes by which decisions are evaluated and
made on the basis of right and wrong.
A. corporate social responsibility
B. ethical climate
C. ecocentric management
D. legal responsibility
E. moral obligation
evaluated and made on the basis of right and wrong. For example, General Electric's top
executives have demonstrated a commitment to promoting high levels of integrity without
sacrificing the company's well-known commitment to business results.
AACSB: Ethics
Blooms: Remember
Topic: Ethics
5-78
57. Which of the following is a danger sign that organizations may be allowing or even
encouraging unethical behavior?
A. Excessive emphasis over long-term consideration over short-term revenues
B. Failure to establish a written code of ethics
C. An informal corporate structure
D. Flexible timings that allow employees to choose their hours of work
E. Multiple levels of supervision and monitoring
Many factors create a climate conducive to unethical behavior. Excessive emphasis on

short-term revenues over longer-term considerations, failure to establish a written code of
ethics, and a desire for simple, quick fix solutions to ethical problems are some signs that
an organization may be allowing or even encouraging unethical behavior.
AACSB: Ethics
Blooms: Understand
Topic: Ethics
5-79
58. The _____ ethical framework encourages employees to consider whether they would like to
see their decisions displayed on the front page of the newspaper.
A. Kohlberg
B. sunshine
C. Sarbanes-Oxley
D. egoism
E. utilitarian
One ethics suggestion is to imagine how you would feel if you saw your decision and its
consequences on the front page of the newspaper. This "light of day" or "sunshine" ethical
framework can be powerful.
AACSB: Ethics
Blooms: Remember
Topic: Ethics
5-80
59. Which of the following should be done for constructing an effective ethics code?
A. Keep it complex, formal, and rigid so that employees realize how serious it is.
B. Make it as catchy and clever as possible.
C. Involve only the legal department and top executives in writing the statement.
D. Let the employees construct the ethics code according to their ideologies.
E. Focus on real-life situations that employees can relate to.
To make an ethics code effective, do the following: involve those who have to live with the
code in writing it; focus on real-life situations that employees can relate to; keep it short,
simple, and easy to understand and remember; write about values and shared beliefs that
people can really believe in; and set the tone at the top, having executives talk about and
live up to the statement.
AACSB: Ethics
Blooms: Understand
Topic: Ethics
5-81
60. An ethics program that is designed by corporate counsel to detect, prevent, and punish
legal violations is called a _____ ethics program.
A. life-cycle-based
B. compliance-based
C. competency-based
D. relativism-based
E. responsibility-based
Ethics programs can range from compliance-based to integrity-based. Compliance-based

ethics programs are designed by corporate counsel to prevent, detect, and punish legal
violations.
AACSB: Ethics
Blooms: Remember
Topic: Ethics
5-82
61. Compliance-based ethics programs are typically designed by _____.
A. corporate counsel
B. employees
C. top executives
D. stockholders/owners
E. focus groups of customers
Compliance-based ethics programs are designed by corporate counsel to prevent, detect,

and punish legal violations.
AACSB: Ethics
Blooms: Remember
Topic: Ethics
5-83
62. Compliance-based ethics programs:
A. are company mechanisms designed to instill in people a personal responsibility for

ethical behavior.
B. are designed by corporate counsel to prevent, detect, and punish legal violations.
C. define ethical behavior as that which maximizes consequences for the individual.
D. define ethical system stating that the greatest good for the greatest number should be
the overriding concern of decision makers.
E. are designed by the employees to define what ethical standards they should follow.
Ethics programs can range from compliance-based to integrity-based. Compliance-based

ethics programs should reduce illegal behavior and help a company stay out of court.
AACSB: Ethics
Blooms: Understand
Topic: Ethics
5-84
63. Integrity-based ethics programs involve _____.
A. stated ethics, rules, and policies
B. corporate social responsiveness
C. a set of guiding principles
D. monitoring and punishment
E. discretionary social responsibility
Integrity-based ethics programs go beyond the mere avoidance of illegality; they are
concerned with the law but also with instilling in people a personal responsibility for ethical
behavior. With such programs, companies and people govern themselves through a set of
guiding principles that they embrace.
AACSB: Ethics
Blooms: Understand
Topic: Ethics
5-85
64. Going beyond legal compliance with ADA standards and training people to understand that
individuals with disabilities also have valued abilities is an example of a(n)_____ ethics
program.
A. compliance-based
B. integrity-based
C. egoism-based
D. competency-based
E. utilitarianism-based
Integrity-based ethics programs would go further by training people to understand and

perhaps change attitudes toward people with disabilities and sending clear signals that
people with disabilities also have valued abilities. This effort goes far beyond taking action
to stay out of trouble with the law.
AACSB: Ethics
Blooms: Understand
Topic: Ethics
5-86
65. Making ethical decisions takes moral _____ which helps realize that an issue has ethical
implications.
A. certainty
B. actionability
C. awareness
D. judgment
E. character
challenges).
AACSB: Ethics
Blooms: Remember
Topic: Ethics
5-87
66. Having the strength and persistence to act in accordance with one's ethics despite the
challenges is referred to as moral _____.
A. awareness
B. judgment
C. certainty
D. action
E. character
challenges).
AACSB: Ethics
Blooms: Remember
Topic: Ethics
5-88
67. According to John Rawls, only a person ignorant of his own identity can make a truly ethical
decision. This thought process is based on _____.
A. ethical shielding
B. the veil of understanding
C. the veil of ignorance
D. ethical certainty
E. ethical ignorance
The philosopher John Rawls created a thought experiment based on the "veil of ignorance."
A decision maker can tactically apply the veil of ignorance to help minimize personal bias.
Rawls maintained that only a person ignorant of his own identity can make a truly ethical
decision.
AACSB: Ethics
Blooms: Understand
Topic: Ethics
5-89
68. The process for ethical decision making begins with:
A. defining the complete moral problem.
B. developing an ethical framework and determining the economic outcomes.
C. considering the legal requirements and evaluating the legal duties.
D. understanding all moral standards and recognizing all moral impacts.
E. proposing a convincing moral solution.
Resolving ethical problems should begin with understanding the various moral standards
(universalism, relativism, etc.) and recognizing the impacts of the alternatives. The final
stage should ideally be proposing a convincing moral solution.
AACSB: Ethics
Blooms: Understand
Topic: Ethics
5-90
69. Which of the following is most likely to be the last step in an ideal ethical decision-making
process?
A. Defining the complete moral problem
B. Developing an ethical framework
C. Determining the legal requirements
D. Understanding all moral standards
E. Proposing a moral solution
Resolving ethical problems should begin with understanding the various moral standards
(universalism, relativism, etc.) and recognizing the impacts of the alternatives. The final
stage should ideally be proposing a convincing moral solution.
AACSB: Ethics
Blooms: Remember
Topic: Ethics
5-91
70. Making ethical decisions takes moral _____, which involves knowing what actions are
morally defensible.
A. awareness
B. judgment
C. character
D. action
E. certainty
challenges).
AACSB: Ethics
Blooms: Remember
Topic: Ethics
5-92
71. To behave ethically, an individual will require:
A. social capital.
B. competitive intelligence.
C. creative thinking.
D. moral character.
E. technical skills.
Behaving ethically requires not just moral awareness and moral judgment but also moral
character, including the courage to take actions consistent with one's ethical decisions.
AACSB: Ethics
Blooms: Understand
Topic: Ethics
5-93
72. Which of the following plays a role in the moral awareness involved in identifying an act as
unethical, the moral judgment to fully consider the repercussions, and the moral character
to take the ethical action?
A. Courage
B. Legitimacy
C. Intelligence
D. Compliance
E. Knowledge
Behaving ethically requires not just moral awareness and moral judgment but also moral
character, including the courage to take actions consistent with one's ethical decisions.
Courage plays a role in the moral awareness involved in identifying an act as unethical, the
moral judgment to fully consider the repercussions, and the moral character to take the
ethical action.
AACSB: Ethics
Blooms: Remember
Topic: Ethics
5-94
73. Which of the following is true of whistleblowing?
A. The road for whistleblowers is easy and painless.
B. Whistleblowers are often encouraged by their company to go public.
C. Whistleblowers are seldom given undesirable assignments.
D. Many whistleblowers suffer consequences such as being ostracized.
E. The Sarbanes-Oxley Act prohibits whistleblowing.
Whistleblowing refers to telling others, inside or outside the organization, of wrongdoing.

The road for whistleblowers is rocky. When whistleblowers go public, they are often seen
as acting against the company's interests. Many, perhaps most, whistleblowers suffer
consequences such as being ostracized, treated rudely, or given undesirable assignments.
AACSB: Ethics
Blooms: Understand
Topic: Ethics
5-95
74. Telling others, inside or outside the organization, about wrongdoing is called _____.
A. ethical shadowing
B. whistleblowing
C. egoism
D. ethical interference
E. moral consequences
Telling others, inside or outside an organization, about its wrongdoings, is called

whistleblowing. When whistleblowers go public, they are often seen as acting against the
company's interests. Many, perhaps most, whistleblowers suffer consequences such as
being ostracized, treated rudely, or given undesirable assignments.
AACSB: Ethics
Blooms: Remember
Topic: Ethics
5-96
75. Corporate social responsibility is the _____.
A. ethical system stating that all people should uphold certain values that society needs to
function
B. obligation toward society assumed by business
C. system that defines acceptable behavior as that which maximizes consequences for the
individual
D. ideology that the greatest good for the greatest number should be the overriding
concern of decision makers
E. maximization of shareholder wealth
Corporate social responsibility is the obligation toward society assumed by business. It

consists broadly of policies and practices that reflect business responsibility for some of
the wider societal good.
AACSB: Ethics
Blooms: Understand
5-97
76. FoodieZ, a fast food manufacturer, changed the packaging of its sandwiches to minimize
waste. Additionally, it uses recycled paper to bag its products. FoodieZ states that these
actions make the earth a "better place to eat." In this scenario, FoodieZ is participating in
_____.
A. deregulation
B. corporate entrepreneurship
C. maximizing customer actualization
D. corporate social responsibility
E. corporate wealth enhancement
Corporate social responsibility is the obligation toward society assumed by business. It

consists broadly of policies and practices that reflect business responsibility for some of
the wider societal good.
AACSB: Ethics
Blooms: Apply
5-98
77. Which of the following responsibilities lies at the base of the pyramid of global corporate
social responsibility and performance?
A. Legal
B. Economic
C. Moral
D. Ethical
E. Philanthropic
Social responsibilities of a company can be categorized into economic, legal, ethical, and
philanthropic responsibilities. The economic responsibility of business lies at the base of
the pyramid of global corporate social responsibility and performance.
AACSB: Ethics
Blooms: Remember
5-99
78. _____ responsibilities of business are to produce goods and services that society wants at a
price that perpetuates the business and satisfies its obligations to investors.
A. Economic
B. Legal
C. Financial
D. Philanthropic
E. Ethical
philanthropic responsibilities. The economic responsibilities of business are to produce
goods and services that society wants at a price that perpetuates the business and
satisfies its obligations to investors.
AACSB: Ethics
Blooms: Remember
5-100
79. Within the pyramid of global corporate social responsibility and performance, doing what is
required by global stakeholders is categorized as a(n) _____ responsibility.
A. economic
B. legal
C. financial
D. philanthropic
E. ethical
Legal responsibilities are to obey local, state, federal, and relevant international laws. It
involves doing what is required by global stakeholders.
AACSB: Ethics
Blooms: Understand
5-101
80. Which of the following levels of corporate social responsibility of business includes meeting
societal expectations that are not written as law?
A. Economic
B. Legal
C. Social
D. Philanthropic
E. Ethical
philanthropic responsibilities. Ethical responsibilities include meeting other societal
expectations, not written as law.
AACSB: Ethics
Blooms: Remember
5-102
81. Which of the following responsibilities of business did Pork producer Smithfield Foods take
on by discontinuing the practice of confining sows in gestation crates during pregnancy,
conforming to external expectations though not legally required?
A. Financial responsibility
B. Economic responsibility
D. Legal responsibility
E. Philanthropic responsibility
philanthropic responsibilities. Ethical responsibilities include meeting other societal
expectations, not written as law.
AACSB: Ethics
Blooms: Understand
5-103
82. Which level of the pyramid of global corporate social responsibility and performance
represents a company's efforts to be a good global corporate citizen, such as supporting
community programs?
B. Legal responsibility
E. Financial responsibility
Philanthropic responsibilities are behaviors and activities that society finds desirable and
that the values of the business support. Examples include supporting community projects
and making charitable contributions.
AACSB: Ethics
Blooms: Understand
5-104
83. Which of the following levels of the pyramid of global corporate social responsibility and
performance represents a company's requirement to be profitable?
B. Relative responsibility
E. Legal responsibility
The economic responsibilities of business are to produce goods and services that society
wants at a price that perpetuates the business and satisfies its obligations to investors. It
requires the company to be profitable.
AACSB: Ethics
Blooms: Understand
5-105
84. The order of the levels in the pyramid of global corporate social responsibility and
performance from bottom to top is _____.
A. economic, legal, philanthropic, and ethical
B. ethical, economic, legal, and philanthropic
C. economic, legal, ethical, and philanthropic
D. legal, economic, ethical, and philanthropic
E. philanthropic, economic, legal, and ethical
The order of the levels in the pyramid of global corporate social responsibility and
performance from bottom to top is economic, legal, ethical, and philanthropic.
AACSB: Ethics
Blooms: Understand
5-106
85. Home Depot supports Habitat for Humanity, a nonprofit that builds affordable housing for
those struggling with poverty, housing, or homelessness. Donation to such an organization
is an example of _____ responsibility.
A. economic
B. legal
C. conventional
D. ethical
E. philanthropic
desirable and that the values of the business support. Examples include supporting
community projects and making charitable contributions.
AACSB: Ethics
Blooms: Apply
5-107
86. A(n) _____ has five higher goals that balance self-interest with responsibility to others.
A. utilitarian education
B. universalism education
C. transcendent education
D. integrity-based ethics program
E. compliance-based ethics program
Transcendent education has five higher goals that balance self-interest with responsibility
to others: empathy, generativity, mutuality, civil aspiration, and intolerance of ineffective
humanity.
AACSB: Ethics
Blooms: Remember
5-108
87. Which of the following is a goal of a transcendent education?
A. Persuasion
B. Independence
C. Empathy
D. Candidness
E. Persistence
AACSB: Ethics
Blooms: Remember
5-109
88. Which of the five goals of a transcendent education involves viewing success not merely as
personal gain, but as a common victory?
A. Empathy
B. Generativity
C. Mutuality
D. Civil aspiration
E. Intolerance of ineffective humanity
ineffective humanity. Mutuality means viewing success not merely as personal gain, but as
a common victory.
AACSB: Ethics
Blooms: Remember
5-110
89. As one of the goals of a transcendent education, speaking out against unethical actions is
called _____.
A. empathy
B. generativity
C. mutuality
D. civil aspiration
ineffective humanity. Intolerance of ineffective humanity means speaking out against
unethical actions.
AACSB: Ethics
Blooms: Remember
5-111
90. As one of the goals of transcendent education, learning how to give as well as take, to
others in the present as well as to those in the future is called _____.
A. empathy
B. generativity
C. mutuality
D. civil aspiration
ineffective humanity. Generativity refers to learning how to give as well as take, to others in
the present as well as to future generations.
AACSB: Ethics
Blooms: Remember
5-112
91. As one of the goals of transcendent education, thinking not just in terms of "don'ts," but
also in terms of positive contributions is called _____.
A. empathy
B. generativity
C. mutuality
D. civil aspiration
ineffective humanity. Civil aspiration refers to thinking not just in terms of don'ts (lie, cheat,
steal, kill), but also in terms of positive contributions.
AACSB: Ethics
Blooms: Remember
5-113
92. Advocates of corporate social responsibility argue that:
A. organizations ought to be profit-seeking and that when they concentrate on this motive,
they will benefit society.
B. organizations' only responsibilities are clearly defined by the laws and regulations
imposed upon them.
C. organizations' responsibilities are to attempt to satisfy all relevant stakeholders'

interests.
D. it is unethical for unelected business leaders to spend shareholders' money on projects

unconnected to key business interests.
E. organizations have a wider range of responsibilities that extend beyond the production
of goods and services at a profit.
Advocates of corporate social responsibility argue that organizations have a wider range of
responsibilities that extend beyond the production of goods and services at a profit. As
members of society, organizations should actively and responsibly participate in the
community and in the larger environment.
AACSB: Ethics
Blooms: Understand
5-114
93. _____ has as its primary goal the creation of sustainable economic development and
A. Corporate social responsibility
C. Ecocentric management
D. Transcendent education
E. Integrity-based ethics program
Ecocentric management has as its goal the creation of sustainable economic development
AACSB: Ethics
Blooms: Remember
5-115
94. Economic growth and development that meet present needs without harming the needs of
future generations is known as _____.
A. ecocentric management
B. risk management
D. resource management
E. ecocentric growth
Sustainability is fully compatible with the natural ecosystems that generate and preserve
life.
AACSB: Ethics
Blooms: Remember
5-116
95. _____ is a process of analyzing all inputs and outputs, through the entire "cradle-to-grave"
life of a product, to determine the total environmental impact of the production and use of
a product.
A. Ecocentric management
C. Sustainable growth
D. SWOT analysis
E. Trend analysis
Increasingly, firms are paying attention to the total environmental impact throughout the
life cycle of their products. Life-cycle analysis (LCA) is a process of analyzing all inputs and
outputs, through the entire "cradle-to-grave" life of a product, to determine the total
environmental impact of the production and use of a product.
AACSB: Ethics
Blooms: Remember
Scenario A: An organization faces an ethical dilemma. A problem with the accounting

process has resulted in higher profits being reported than were actually earned. A meeting
has been arranged where senior management would decide how to handle the situation.
The people at the table have varying views of what action to take and why.
Ethan wants to report the error immediately because he believes he could possibly go to
jail if it isn't reported right away.
Tripp wants to report the error because it is the honest thing to do, and therefore
necessary.
After hearing his colleagues' opinions, Carlos says he wants to report the error as well
because he wants to go along with the more experienced managers in the group.
5-117
96. Which of the following best describes the ethical system used by Tripp to make his
decision?
A. Universalism
B. Egoism
C. Utilitarianism
D. Relativism
E. Virtue ethics
society needs to function. Tripp makes the decision on the basis that it is the honest and
necessary thing to do; therefore universalism best describes his stance.
AACSB: Ethics
Blooms: Apply
Topic: Ethics
5-118
97. Which of the following best describes the ethical system used by Ethan to make his
decision?
A. Universalism
B. Egoism
C. Utilitarianism
D. Relativism
E. Virtue ethics
Egoism is an ethical system defining acceptable behavior as that which maximizes benefits
for the individual. In this case, Ethan tries to keep himself from jail.
AACSB: Ethics
Blooms: Apply
Topic: Ethics
5-119
98. Which of the following best describes the ethical system used by Carlos to make his
decision?
A. Universalism
B. Egoism
C. Utilitarianism
D. Relativism
E. Virtue ethics
people. Carlos makes the decision because he wants to go along with the other managers;
therefore relativism best describes his stance.
AACSB: Ethics
Blooms: Apply
Topic: Ethics
5-120
99. Assume the meeting ending with employees deciding that none of them will report or do
anything about any possible unethical behavior. Walt, an employee who was present in the
meeting, reports the issue to his manager who was not present in the meeting. Which of
the following best describes the action taken by Walt?
A. Whistleblowing
B. Relativism
C. Ethnocentrism
D. Shadowing
E. Unethical stance
Whistleblowing refers to telling others, inside or outside the organization, of wrongdoing.

This is what is being done by Walt in the given scenario.
AACSB: Ethics
Blooms: Apply
Topic: Ethics
Scenario B: Suppose a manager faces a question regarding how to handle a defective piece
of equipment that his company sold. Telling the customer would cost him a substantial
amount of money. At the same time, if the equipment fails, it could lead to serious injury of
the customer. The manager is going to choose between three options presented by
colleagues:
Option 1: Keep quiet about the defect.

Option 2: Talk to others and see what they would have done in the same situation.
Option 3: Disclose the defect and suggest alternatives because it is the honest thing to do.
5-121
100. Which of the following terms best describes the ethical approach used in option 1?
A. Universalism
B. Egoism
C. Utilitarianism
D. Relativism
E. Virtue ethics
Egoism is an ethical system defining acceptable behavior as that which maximizes benefits
for the individual, which in this case is keeping a substantial amount of money.
AACSB: Ethics
Blooms: Apply
Topic: Ethics
5-122
101. Which of the following terms best describes the ethical approach used in option 2?
A. Universalism
B. Egoism
C. Utilitarianism
D. Relativism
E. Virtue ethics
people, which is what is being employed in option 2.
AACSB: Ethics
Blooms: Apply
Topic: Ethics
5-123
102. Which of the following options best describes the ethical approach used in option 3?
A. Universalism
B. Egoism
C. Utilitarianism
D. Relativism
E. Virtue ethics
society needs to function. This is the rationale behind option 3.
AACSB: Ethics
Blooms: Apply
Topic: Ethics
Scenario C: Adrian and Clarke, managers from different departments at Clarion Bank, are
discussing the troubling behavior of a bank employee. Adrian says that it is the
responsibility of high-level managers to take steps and prevent offenses by punishing
wrongdoers. However, Clarke believes that every individual should take personal
responsibility for his behavior and that everyone needs to understand how to do the right
thing.
5-124
103. In Scenario C, each of the managers tend to be responsible for creating a different _____ in
their respective departments.
A. legal responsibility
B. ethical climate
D. organizational structure
E. corporate culture
AACSB: Ethics
Blooms: Understand
Topic: Ethics
5-125
104. Which of the following types of ethics program does Adrian prefer for the company?
A. Associate-based
B. Compliance-based
C. Integrity-based
D. Systems-based
E. Consensus-based
Compliance-based ethics programs are designed by corporate counsel to prevent, detect,

and punish legal violations. Program elements include establishing and communicating
legal standards and procedures, assigning high-level managers to oversee compliance,
auditing and monitoring compliance, reporting criminal misconduct, punishing wrongdoers,
and taking steps to prevent offenses in the future.
AACSB: Ethics
Blooms: Apply
Topic: Ethics
5-126
105. Which of the following types of ethics program does Clarke prefer for the company?
A. Associate-based
B. Compliance-based
C. Integrity-based
D. Systems-based
E. Consensus-based
Integrity-based ethics programs go beyond the mere avoidance of illegality; they are
concerned with the law but also with instilling in people a personal responsibility for ethical
behavior, which Clarke exhibits in the scenario.
AACSB: Ethics
Blooms: Apply
Topic: Ethics
Scenario D: John and Mack are colleagues who witnessed one of their team members,
Jake, using the office telephone to make an emergency personal call, which is prohibited in
their company. The management had previously announced that those who report
wrongdoing of fellow employees will be rewarded. John decided not to report Jake's act to
the management since it involved an emergency situation. However, Mack decided to do so
with the hope of being rewarded.
5-127
106. In Scenario D, according to Kohlberg's model of cognitive moral development, John can be
A. preconventional
B. conventional
C. principled
D. unconventional
E. operational
Individuals differ in this regard. Kohlberg's model of cognitive moral development classifies
people into categories based on their level of moral judgment. People in the principled
stage see beyond authority, laws, and norms and follow their self-chosen ethical principles.
AACSB: Ethics
Blooms: Apply
Topic: Ethics
5-128
107. In Scenario D, according to Kohlberg's model of cognitive moral development, Mack can be
A. preconventional
B. conventional
C. principled
D. unconventional
E. operational
Individuals differ in this regard. Kohlberg's model of cognitive moral development classifies
people into categories based on their level of moral judgment. People in the
preconventional stage make decisions based on concrete rewards and punishments and
immediate self-interest.
AACSB: Ethics
Blooms: Apply
Topic: Ethics
Scenario E: Senior management at Valley Development is attending a corporate retreat,

and the first item for discussion is corporate social responsibility (CSR). The group has
discussed this before and then shot it down because it generally costs Valley's
shareholders in the form of reduced distributions. But the new VP, Gita Halle, is about to
explain why she believes CSR will actually benefit the shareholders and Valley
management alike. Her team begins the presentation with a discussion of CSR, both its
current definition and reconciliation of past views. Jeremiah then discusses the importance
of being a good global corporate citizen by supporting the local school system. Ellen takes
the floor to make the case for doing what is expected by global stakeholders even though
there are no laws requiring those actions. Finally Gita wraps the discussion up by defining
why Valley should take legal responsibility for the firm's performance.
5-129
108. In Scenario E, Jeremiah's presentation most likely focuses on the _____ responsibility of the
firm.
A. economic
B. legal
C. ethical
D. financial
E. philanthropic
desirable and that the values of the business support. Jeremiah discussing the importance
of being a good global citizen by supporting the local school system focuses on the
philanthropic responsibility of the firm.
AACSB: Ethics
Blooms: Apply
5-130
109. In Scenario E, Ellen's presentation most likely focused on the _____ responsibility of the
firm.
A. economic
B. legal
C. ethical
D. social
E. philanthropic
Ethical responsibilities include meeting other societal expectations, not written as law. It
involves doing what is expected by global stakeholders. This is what Ellen is most likely to
focus on.
AACSB: Ethics
Blooms: Apply
5-131
110. Gita's presentation most likely centered on taking which of the following actions?
A. Production of goods and services that society wants at a price that perpetuates the
business and satisfies its obligations to investors
B. Obeying all laws that affect Valley's operations
C. Doing the right thing regardless of what the law says
D. Supporting Jeremiah's proposal
E. Engaging in additional behaviors and activities that society finds desirable and that the
values of the business support
Legal responsibilities are to obey local, state, federal, and relevant international laws. This
is likely to have been the central theme of Gita's presentation.
AACSB: Ethics
Blooms: Apply
Essay Questions
5-132
111. Explain the terms ethical issue, business ethics, and moral philosophy.
Answers will vary.
AACSB: Ethics
Blooms: Understand
Topic: Ethics
112. Discuss the types of ethical systems and provide an example for each.
Answers will vary.
AACSB: Ethics
Blooms: Understand
Topic: Ethics
5-133
113. Describe Kohlberg's model of cognitive moral development. Give an example for each of
the stages.
Answers will vary.
AACSB: Ethics
Blooms: Apply
Topic: Ethics
114. There are some danger signs within an organization that create a climate which
encourages unethical behavior. Describe five of them.
Answers will vary.
AACSB: Ethics
Blooms: Understand
Topic: Ethics
5-134
115. Describe compliance-based ethics programs and integrity-based ethics programs. Explain
the differences between them.
Answers will vary.
AACSB: Ethics
Blooms: Understand
Topic: Ethics
116. Making ethical decisions takes moral awareness, moral judgment, and moral character.
Define each term and explain how you would use it in business.
Answers will vary.
AACSB: Ethics
Blooms: Understand
Topic: Ethics
5-135
117. Explain the process for ethical decision making.
Answers will vary.
AACSB: Ethics
Blooms: Understand
Topic: Ethics
118. Write an essay on whistleblowing.
Answers will vary.
AACSB: Ethics
Blooms: Understand
Topic: Ethics
119. Explain the pyramid of global corporate social responsibility and performance.
Answers will vary.
AACSB: Ethics
Blooms: Understand
5-136
120. Define transcendent education and explain the five higher goals associated with it.
Answers will vary.
AACSB: Ethics
Blooms: Understand
121. Build a case for the convergence of profit maximization and corporate social responsibility.
Answers will vary.
AACSB: Ethics
Blooms: Apply
122. Explain how the natural environment and sustainability is linked with business ethics.
Answers will vary.
AACSB: Ethics
Blooms: Understand
Learning Objective: 05-05 Discuss reasons for businesses' growing interest in the natural environment.
5-137
123. Explain the idea of a risk society.
Answers will vary.
AACSB: Ethics
Blooms: Understand
Learning Objective: 05-05 Discuss reasons for businesses' growing interest in the natural environment.
124. Explain life-cycle analysis and how organizations are using it to pay more attention to the
total environmental impact.
Answers will vary.
AACSB: Ethics
Blooms: Understand
5-138
125. Discuss ecocentric management.
Answers will vary.
AACSB: Ethics
Blooms: Understand
5-139

Management Leading and Collaborating in A Competitive World 11th Edition Bateman Test Bank 1

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Management Leading and Collaborating in A Competitive World 11th Edition Bateman Test Bank 1

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Management Leading and

Collaborating in a Competitive World

Test Bank: https://testbankpack.com/p/test-bank-for-management-

Ethics, Corporate Responsibility, and Sustainability

True / False Questions

3. Astroturfing is considered a difficult but ethical practice.

4. An ethical issue is a situation, problem, or opportunity in which an individual is obligated to

23. Being a whistleblower is typically a straightforward and painless process.

26. A transcendent education involves balancing self-interest with responsibility to others.

A. When corporations behave unethically, only the top executives suffer.

B. When corporations behave unethically, only the shareholders suffer.

E. There is no evidence that corporations today ever behave unethically.

A. a moral rights debate

42. The Caux Principles are based on two ethical ideals:

A. fairness and equality.

B. self-fulfillment and sharing.

C. unity and respect.

D. kyosei and human dignity.

E. honesty and happiness.

45. Utilitarianism is centered around the idea that:

A. ethical ideas depend on kyosei and human dignity.

B. an ethical system should define acceptable behavior as that which maximizes

A. It was passed in 1992.

B. It requires strict adherence to accounting rules.

C. It gives senior managers power to not sign off on financial results.

D. It is intended to maintain truth in advertising.

E. It requires whistleblowers to be fired.

A. corporate social responsibility

A. Excessive emphasis over long-term consideration over short-term revenues

B. Failure to establish a written code of ethics

C. An informal corporate structure

D. Flexible timings that allow employees to choose their hours of work

E. Multiple levels of supervision and monitoring

B. Make it as catchy and clever as possible.

E. Focus on real-life situations that employees can relate to.

61. Compliance-based ethics programs are typically designed by _____.

E. focus groups of customers

63. Integrity-based ethics programs involve _____.

A. stated ethics, rules, and policies

B. corporate social responsiveness

C. a set of guiding principles

D. monitoring and punishment

E. discretionary social responsibility

B. the veil of understanding

C. the veil of ignorance

A. defining the complete moral problem.

B. developing an ethical framework and determining the economic outcomes.

C. considering the legal requirements and evaluating the legal duties.

D. understanding all moral standards and recognizing all moral impacts.

E. proposing a convincing moral solution.

A. Defining the complete moral problem

B. Developing an ethical framework

C. Determining the legal requirements

D. Understanding all moral standards

E. Proposing a moral solution

73. Which of the following is true of whistleblowing?

A. The road for whistleblowers is easy and painless.

B. Whistleblowers are often encouraged by their company to go public.

C. Whistleblowers are seldom given undesirable assignments.

D. Many whistleblowers suffer consequences such as being ostracized.

E. The Sarbanes-Oxley Act prohibits whistleblowing.

75. Corporate social responsibility is the _____.

B. obligation toward society assumed by business